Used tillage values soar

GREG PETERSON01/20/2011 @ 11:15am
Greg Peterson writes "Machinery Pete" column for Successful Farming magazine and appears on the Machinery Show on RFD-TV, talking about trends in the used equipment market

December 1, 2006: Starbuck, MN (west-central MN) farm auction.That was the first time I saw a JD 726 mulch finisher sell for more than $30,000 at auction. The 726 sold on that sale was basically brand new, a 2006 model, 38.5' with 5-bar harrow. It sold for $37,000. Everything sold high on that sale, including another tillage item, an IHC 800 12-18 auto reset plow (done 2,000 acres) sold for $32,500.

Used tillage values have definitely risen here the last 3-4 years, especially on items in very good condition. Since July 2010, used tillage values have shot higher again. I see the proof in the form of auction sale prices from around the U.S. and Canada.Take for example, a very nice farm auction held January 11th in Easton, IL (west-central IL). Sanert Auction Service had this sale. Here's a rundown of the tillage items sold on this auction:

JD 400 30' rotary hoe, flat fold: $7,100

Landoll 7430 26' vertical till tool finisher: $32,500

JD 726 33' soil finisher: $30,500

JD 630 disk, 25': $10,750

DMI 530B disc chisel, 5 shank: $10,100

DMI 530 disc chisel, 5 shank: $8,000

Great Plains 2200 turbo till, 22', rolling basket: $22,500

What jumps out at you in this sale price list? I know $7,100 for the JD 400 30-foot rotary catches my eye. But also $30,500 for the JD 726 finisher. I checked our Machinerypete.com web site and found we have compiled (108) auction sale prices on JD 726's. From 1997 until that December 1, 2006 farm sale in west-central Minnesota, none sold for $30,000 or more. Now guess how many I've seen sold for $30K+ since 2008?Nine.Including a 1997 JD 726 finisher (30'9") sold for $38,000 on a July 31, 2010 farm auction in east-central Nebraska. Remember how I said used tillage value began to spike higher last July? Here's proof for you.For perspective, compare that $38,000 sale price to what these similar JD 726 finishers sold for years earlier:

1/04 sale west-central IN: 1998 model, 31', excellent $17,700

2/01 sale west-central IA: 1996 model, 30', good $14,000

1/99 sale east-central NE: 1995 model, 30', excellent $19,700

7/98 sale southeast IA: 1997 model, 30'9", excellent $17,500

8/98 sale northwest IN: 1997 model, 30', excellent $20,000

So when these 30-foot JD 726 finishers were 1-6 years old they were worth $14,000 - $20,000 and now flash forward to today and find they're 13-14 years old and worth twice as much money.Amazing.And again, it's not just an isolated incident of one particular JD 726 finisher selling high at auction. As I pointed out before, I've seen (9) sell for $30,000 or more at auction since 2008. See for yourself:

This tillage trend not just on green paint, or just on finishers either. I've seen the same rising value trend on CaseIH 496 disks. $13,000 for a 25-foot CaseIH 496 on a January 12, 2001 farm sale in west-central Indiana. $13,000 for a 28.5' 496 disk sold on a November 19, 2010 farm auction in central Iowa.